G R Infra slides after CBI raids

G R Infraprojects fell 2.76% to Rs 1,120.15 after the Central Bureau of Investigation (CBI) registered FIR against the company and its three officials.

CBI has registered an First Information Report (FIR) against G R Infraprojects and its three officials, namely Sunil Agarwal, executive director, Dilip Rajput, assistant general manager and Pankaj Singh, dy. manager (structure). The aforesaid officials are presently under arrest.

Further, searches were conducted in the matter by the CBI at the corporate office of the company at Gurugram and the residence of the chairman, Vinod Kumar Agarwal on 13 June 2022, which have now been concluded.

CBI summoned the chairman on 14 June 2022, and he duly appeared.

The company clarified to the bourses that all the operations of the company including its core operations at construction sites all over India, are functioning without any impediment and continue to remain fluent, however it is difficult for the company to assess the impact of the aforesaid matter on the company at this stage.

The company said it undertakes to abide by all applicable laws and co‐operate with the law enforcement agencies. "We undertake to keep the stock exchange(s) informed with any material information and updates in the concerned matter," it said.

Separately, the company announced that its subsidiary GR Bandikui Jaipur Expressway has executed the concession agreement with the National Highways Authority of India on 14 June 2022. The project worth Rs 1,368 crore includes the construction of a 4-lane greenfield expressway spur from Delhi-Vadodara Greenfield expressway near Bandikui to Jaipur in Bharatmala Pariyojana Phase-1 in Rajasthan on hybrid annuity mode. The completion of the project is expected to be within 730 days from appointed date. The operational period stands for 15 years from commercial operation date.

G R Infraprojects is an integrated road engineering, procurement and construction (EPC) company largely focused on road sector. The company has also recently diversified into projects in the railway sector.

The road construction company's consolidated net profit rose 8.9% to Rs 276.56 crore on 12.4% drop in net sales to Rs 2,396.11 crore in Q4 FY22 over Q4 FY21.

Shares of G R Infraprojects hit a 52 week low of Rs 1,111 today, tumbling 21% in eight straight trading sessions. On year to date basis, the stock has declined 34.94% while the benchmark Sensex has risen 0.76% during the same period.

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